Why Borrowers with Poor Rating Search for Loans Without Credit Check?

Why Borrowers with Poor Rating Search for Loans Without Credit Check?

Borrowing with bad credit comes with its own set of Do’s and Don’ts. The desperation to locate a cheap loan with bad credit is followed by anxiety of managing the credit rating. For, borrowing a loan with poor score further challenges the already besieged credit health.

Most of the bad credit borrowers desire special loans with no credit check and no guarantors. However availing a no credit check loan in the UK is technically not viable. You can ask the lender for soft credit check loans but cannot eliminate the process.

Why credit check is required?

Every time you apply for a loan, the lender enquires your credit score from a Credit Bureau so as to gauge the level of risk associated with your loan application. The query being the financial activity on your account is marked on your credit report.

Thus credit check helps lenders know how safe is their money. Likewise the borrower gets to know about their credit eligibility with the credit check. According to FCA no lender in the UK can extend a no credit check loan.

Why poor credit borrowers ask for no credit check loans?

People struggling with poor rating look for no credit check loans so as to save a foot print in their credit report. Basically people want to protect their credit rating as much as possible. However the lure to obtain a no credit check loan can take you close to the loan sharks.

You should be careful at every step of searching bad credit loans as fake financers are always on a look out for desperate borrowers.

How to find bad credit short term loans and protect your credit rating?

The most hassle free method of searching a bad credit loan in the UK is certainly to contact a loan broker. You just to need to fill a form online on their website and share your contact details. They are financial experts who search for the required bad credit loans without hurting your credit rating.

The brokers basically ask lenders to initiate only soft credit checks. Thus when brokers contact lenders for your query they ensure that credit check is undertaken without making a footprint in your credit report. This also ensures that no further impact is made on your credit score.

Does credit check affect loan rate?

The better is your credit score and history, the better are the chances of availing a lower interest rate. However poor credit rating calls for higher rate of interest. When you contact a lender with the help of a loan broker, the latter assures the lowest possible rate. It is not a cakewalk to negotiate the rate of interest directly with the lenders.

Thus credit check doesn’t hurt your loan rate directly but they certainly are indicator of your credit worth. Hope you would now search for more important aspects of bad credit loans, other than credit check.

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Representative Example

We compare loans that can be paid back over terms of between 1 and 25 years. The APR interest rate you’ll be charged depends on your personal circumstances, and will be between 3.2% and 99.9%. This is a representative example of what it may cost: a Loan of £7,500 over 60 months at 3.3% APR would equate to monthly repayments of £135.60, and the total cost of the loan that you pay back would be £8,136.22

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Loans approvals are subjected to affordability and creditworthiness checks. Lenders will offer loans of the amount as agreed and undersigned, only after the borrower shows collateral/no collateral, and adheres to the prescribed Terms & Conditions of the lender. The affordability of respective product offered, is subject matter of lender. Best Short Term Loans is a licensed credit brokerage business, and does not work or act as a lender. As a broker, we process the information provided to us and pass this onto our trusted panel of lenders to help the borrower apply for the loan.